Adidas has finally turned the page on its lucrative but tumultuous partnership with Ye, the rapper formerly known as Kanye West. Things are looking up for the German sneaker giant after its first post-Yeezy quarter.
Adidas posted initial results from the first quarter of 2025 on Wednesday with operating profit growing about 82% and sales increasing about 13% from the same period last year. The company sold off the remainder of its Yeezy inventory at the end of 2024 after announcing in October it had formally ended its partnership with the artist in an out-of-court settlement.
First quarter sales grew by nearly 700 million euros, or close to $800 million, with roughly $7 billion in total revenue
While it won’t be totally clear what drove Adidas’s success this winter until its full quarterly report drops April 29, the company has certainly found its stride with popular lines like Samba and Gazelle, which both lean in to the trendiness of vintage and retro styles. Also in March, CEO Bjørn Gulden said his company will cut 500 “obsolete” jobs after a review of its German headquarters.
The looming threat of tariffs from President Donald Trump’s administration could change Adidas’s tune in the second quarter. Like other sports retailers, Adidas saw its stock fall and then rise back up as Trump announced and scaled back the tariffs. The company isn’t totally in the clear: About 16% of its total volume in 2024 came from China, which is still heavily tariffed by the Trump Administration, and its other sources like Vietnam and Indonesia still face the global 10% tariff.
